A$ Tanks after Trumps strong dollar comments

It’s been a wild 24 hours for currency traders and US President Donald Trump’s latest comment – that he wants “to see a strong [US] dollar” – is adding to the volatility.

At 9am AEDT on Australia Day, the dollar was 0.5 per cent lower at US80.26¢; it ranged over the past day from a four-month high of US81.19¢ to a low of US80.12¢.

Volatility spiked across global markets – equities, bonds, commodities as well as currencies – after Mr Trump outright contradicted his Treasury Secretary Steven Mnuchin, and said that Mr Mnuchin’s comments had been “taken out of context”.

Earlier overnight, there had been a wave of criticism about the seemingly new US dollar position staked out by Mr Mnuchin from European Central Bank president Mario Draghi, International Monetary Fund boss Christine Lagarde and hedge fund billionaire Ray Dalio.

The Sydney Morning Herald

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes